CFE Corporate Governance 4

Question 1

A whistleblower who reports securities law violations to the SEC may be entitled to a financial award under:

Accepted Answer

Dodd-Frank Wall Street Reform and Consumer Protection Act

Answer

Dodd-Frank established the SEC's whistleblower program, providing awards of 10–30% of sanctions exceeding $1 million to eligible tipsters.

Question 2

The three-lines-of-defense model assigns internal audit to which line?

Accepted Answer

Third line

Answer

The third line of defense is internal audit, which provides independent assurance over the effectiveness of governance, risk management, and controls.

Question 3

Which of the following scenarios most directly represents a failure of the duty of care by a corporate director?

Accepted Answer

Approving a major acquisition without reviewing any financial analysis

Answer

The duty of care requires directors to make decisions based on adequate information; approving a major transaction without review clearly breaches this duty.

Question 4

Which governance structure is characterized by a supervisory board overseeing a separate management board, common in Germany and the Netherlands?

Accepted Answer

Two-tier board structure

Answer

The two-tier (dual) board structure separates strategic oversight (supervisory board) from executive management (management board), common in continental Europe.

Question 5

An audit committee charter should specify all of the following EXCEPT:

Accepted Answer

Daily operational responsibilities of the CFO

Answer

The CFO's daily operational duties are a management responsibility and are not governed by the audit committee charter.

Certified Fraud Examiner Exam Practice Test

Certified Fraud Examiner Exam Practice Test

CFE Corporate Governance 4